JGBS: Futures Hold Negative Bias As We Approach BoJ Announcement Window

• China's RatingDog China PMI Mfg for September was +51.2, up from +50.5 in August and the highest since March.  
• Having contracted in May and July on trade war related volatility, today's strong release will be pleasing as some signs of the first half strength may not be sustained.  
• Output was up to 52 from 50.5 in August and New orders were stronger than the month prior and the highest print since February.  
• RatingDog China PMI Services for September was 52.9 from 53.0 in August.
• Employment declined to +48.4 from 48.7 for the lowest since April.  
• Prices charged rose relative to the last month. 

The CNY500 billion policy-based financial instruments announced by the National Development and Reform Commission Monday are expected to leverage about CNY6 trillion in investment, equivalent to 24% of the total infrastructure investment in 2024, Yicai.com reported citing Wang Qing, analyst with Golden Credit Rating. The new tool, aimed at replenishing project capitals, will likely drive the infrastructure investment growth by 3-4 percentage points within three years, Wang said. The figure grew by 2% y/y in the first eight months, decelerating by 1.2 pp from the Jan-Jul period.

China has firmly opposed the U.S.’s extension of export restrictions from a single listed entity to its subsidiaries in which it holds more than 50% of the shares and urged Washington to immediately correct its wrongful practice and stop the unreasonable suppression of Chinese companies, the Ministry of Commerce said in a statement late Monday. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises, the statement said.